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A content and process view on bounded rationality in system dynamics
Author(s) -
Größler Andreas
Publication year - 2004
Publication title -
systems research and behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 1092-7026
DOI - 10.1002/sres.646
Subject(s) - bounded rationality , rationality , computer science , perspective (graphical) , system dynamics , process (computing) , dynamics (music) , management science , relation (database) , statement (logic) , bounded function , ideal (ethics) , content (measure theory) , artificial intelligence , epistemology , mathematics , psychology , economics , data mining , mathematical analysis , pedagogy , philosophy , operating system
The paper reviews references to bounded rationality within the system dynamics literature. It is argued that so far the relation between bounded rationality and system dynamics has primarily been discussed from a ‘content’ perspective, that is, that boundedly rational decision making needs to be incorporated in the detail of system dynamics models because of the methodology's aspiration to represent real, not ideal decision making. In this paper this content view is extended by a new ‘process’ perspective. This perspective concerns effects observed at the level of whole models. For example, during modelling the developer of a system dynamics model is prone to be influenced by the limitations of rationality, which might lead to erroneous models. In the same way, users conducting simulation experiments with models are prone to carry out these simulations in an unsystematic way and might draw wrong conclusions from the simulation outcomes. The paper then outlines the connections between the established content view and the new process view on bounded rationality in system dynamics. These connections lie in the knowledge elicitation phase of modelling and in the changes of real systems on the basis of insights gained in modelling and simulation. The paper closes with a brief statement of the research that the author is conducting with a view to exploring further these ideas. Copyright © 2004 John Wiley & Sons, Ltd.